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Re: Production order vs Product cost collector as a cost object for consumer goods business

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Also I missed to mention that they are planning to use split valuation to track cost for same end product (FG materiel) with different grades/quality.

 

We are not planning to use REM process however we are analyzing the pros and cons to use product cost collector to decouple cost from production order. Further the production process would manufacture end product facial tissue paper (FG material) one week and toilet tissue paper (FG material) next week i.e. it would switch between these two FG products on weekly basis. To add the complexity FG grades manufactured may vary for these two main FG materials based on demand planning.


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